STEPS Agreement (Hansard, 19 July 2004)

§ Denzil Davies
To ask the Chancellor of the Exchequer pursuant to his answer of 15 June 2004,Official Report, column 835W, on the STEPS agreement, in respect of what costs were the payments in excess of the annual charge of £170 million made to Mapeley STEPS Ltd. in each year to April (a) 2002, (b) 2003 and (c) 2004. [184334]

§ Dawn Primarolo
The £170 million, mentioned within the NAO report, relates to Facility price only and is an estimated annual charge only. The difference in the actual Facility Price payments and the total payments to Mapeley STEPS Contractor are for services and pass through costs provided for in the contract such as major works, minor works and utilities.
The data for years to April 2002 and 2003 have been routinely archived and therefore cannot be obtained without disproportionate cost. However, for the year to April 2004 the data are available for the Inland 43W Revenue. The amounts that account for contract expenditure in addition to the Facility Prices are as follows:

2003–04

Amount (£000)

Major works 25,378

Utilities 12,728

Minor works and services 12,536

VAT on rent 10,163

New services for existing facilities 2,244

Total 63,049

§ Denzil Davies
To ask the Chancellor of the Exchequer pursuant to his answer of 15 June,Official Report, column 835W, on the STEPS agreement, what his present estimate is of the total payments over the 20 years' contract that will be paid to Mapeley STEPS Ltd. for the Chancellor's departments. [184339]

§ Dawn Primarolo
In their report on the STEPS deal, the NAO estimated that the Departments would pay Mapeley STEPS Contractor Ltd. some £1,500 million over the 20 years of the contract. This relates to the major contract price element (the facility price) for serviced accommodation. The NAO noted that this cost reflected the Departments anticipated requirements which may vary over time.
Taking this uncertainty into account, the figure contained in the NAOs report remains a reasonable estimate of the likely total Facility Price payments due to Mapeley over 20 years.
In addition to this the contract provides a flexible framework in which we are able to transact with Mapeley to provide a range of services including, utilities, business rates, and major and minor building works. Under the contract the cost of these additional services are charged on to the departments separately and will vary according to demand.

§ Denzil Davies
To ask the Chancellor of the Exchequer pursuant to his answer of 15 June 2004,Official Report, column 835W, on the STEPS agreement, whether the payments made to Mapeley STEPS Ltd. in each year to April (a) 2002, (b) 2003 and (c) 2004 were provided for in the contract which commenced on 2 April 2001. [184340]

£000

Departments/Agencies 1997–98 1998–99 1999–2000 2000–01 2001–02 2002–03 2003–04

HM Treasury¹ 1,069 1,455 1,619 1,718 1,340 1,839 1,944

Debt Management Office^1,2 — 9 26 9 17 25 36

Office of Government Commerce³ — — — 1,110 1,106 1,047 1,171

OGCBuying. Solutions⁴ — — — — 413 494 644

Valuation Office Agency¹ 3,700 3,320 3,580 3,530 3,300 3,550 3,750

HM Customs and Excises 3,000 3,000 3,000 3,000 4,005 5,002 6,200

Inland Revenue¹ 14,509 17,506 26,489 28,077 31,941 35,230 37,335

Royal Mint¹ 456 380 455 503 490 466 536

National Savings and Investments 805 755 191 259 295 311 273

Office of National Statistics 1,671 1,784 2,425 2,661 2,550 2,846 3,314

Government Actuary's Department 80 71 95 89 88 97 92

¹ Figures include subsistence, as travel could only be disaggregated at disproportionate cost.

² The DMO did not exist as a separate body prior to 1998–99.

³ OGC have provided figures from their date of inception—2000.

⁴ OGC Buying.Solutions have provided figures from their date of inception—2001.

⁵ Figures between 1997–2000 show approximate spend on Rail, Air and Ferry prior to external Contract. Other figures reflect spend on Contract, as off-Contract spend or business mileage could be disaggregated only at disproportionate cost.

44W

§ Dawn Primarolo
The Departments made payments that were provided for in the contract and due to Mapeley STEPS Contractor Ltd. in each of the years 2002, 2003 and 2004. By its nature any serviced accommodation contract provides a flexible framework for provision of a variety of services. In the case of the STEPS contract the Departments are able to transact with Mapeley to call off services including the provision of Major and Minor change works and the payment of Utilities. These are in addition to the fixed facility payment element due under the contract for serviced accommodation.

2003–04
	Amount (£000)
Major works	25,378
Utilities	12,728
Minor works and services	12,536
VAT on rent	10,163
New services for existing facilities	2,244
Total	63,049

							£000
Departments/Agencies	1997–98	1998–99	1999–2000	2000–01	2001–02	2002–03	2003–04
HM Treasury¹	1,069	1,455	1,619	1,718	1,340	1,839	1,944
Debt Management Office^1,2	—	9	26	9	17	25	36
Office of Government Commerce³	—	—	—	1,110	1,106	1,047	1,171
OGCBuying. Solutions⁴	—	—	—	—	413	494	644
Valuation Office Agency¹	3,700	3,320	3,580	3,530	3,300	3,550	3,750
HM Customs and Excises	3,000	3,000	3,000	3,000	4,005	5,002	6,200
Inland Revenue¹	14,509	17,506	26,489	28,077	31,941	35,230	37,335
Royal Mint¹	456	380	455	503	490	466	536
National Savings and Investments	805	755	191	259	295	311	273
Office of National Statistics	1,671	1,784	2,425	2,661	2,550	2,846	3,314
Government Actuary's Department	80	71	95	89	88	97	92
¹ Figures include subsistence, as travel could only be disaggregated at disproportionate cost.
² The DMO did not exist as a separate body prior to 1998–99.
³ OGC have provided figures from their date of inception—2000.
⁴ OGC Buying.Solutions have provided figures from their date of inception—2001.
⁵ Figures between 1997–2000 show approximate spend on Rail, Air and Ferry prior to external Contract. Other figures reflect spend on Contract, as off-Contract spend or business mileage could be disaggregated only at disproportionate cost.